DETERMINANTS OF FOREIGN DIRECT INVESTMENTS IN THE GCC COUNTRIES: A SOCIO-POLITICAL STUDY

Resumen

This paper attempts to identify the factors contributing to the growth of foreign direct investments (FDI) in the GCC countries. This socio-political study utilized a secondary method, time series data that has been obtained from the World Bank. This study uses several variables, but only a few are used in the actual analysis of the data given the limited time and resources for the resourcing of such data and the fact that some countries do not disclose some of the economic data and indicators for their foreign direct investment growth over the years. Given the results, the key factor is exports from the sale of oil and its products, the international tourism level of the country, the factor endowments, including minerals such as titanium and iron, factors such as expenditure on the military, the level of asses from foreign trade, otherwise known as net foreign assets, and the level of value addition that takes place in the country try to allow foreign multinational companies to thrive, and hence such economies grow.